As Company transforms to pure gold mining platform
HONG KONG, Aug. 31 /PRNewswire-Asia / -- Gold mining and processing company China Precious Metal Resources Holdings Co., Ltd. ("CPM", HKEx: 1194) announces a turnover of HK$40,698,000 (2009: Nil) from continuing operations for the six months to 30 June 2010. Profit from continuing operations attributable to shareholders of the Company was approximately HK$7,507,000 (2009: Loss of HK$4,668,000), with earnings per share amounting to HK0.33 cent (2009: Loss of HK0.48 cent). The Group did not declare an interim dividend.
The Group's increase in turnover and turnaround were mainly attributable to contributions from the newly introduced gold mining business and the discontinuation of the loss-making business of edible oil and related products.
2009 witnessed a major business restructuring for the Group. During the period under review, the board of directors of the Group has resolved to discontinue and dispose of its existing loss-making edible oil businesses, paving the way for its strategic shift of business focus to gold mining, production and sales. After a series of mergers and acquisitions, the Group is gradually transforming into a pure gold mining platform.
The Group currently operates gold mining businesses in Chifeng City, Inner Mongolia, the PRC. The Chifeng Gold Mines have an aggregate exploitation area of approximately 0.926 square kilometers with proven gold reserves of 15.7 tonnes at average grade of 9.72 gram per tonne. The concentrating mills under the Chifeng Gold Mines have a daily processing capacity of 200 tonnes of ores. During the period under review, the gold mining business delivered a gross profit of HK$29,128,000.
During the period under review, the Group continued to pursue opportunities to acquire gold minerals of high quality in China. On 2 June 2010, the Group entered into a sales and purchase agreement for the acquisition of exploitation rights to a gold mine with an area of approximately 7.2241 square kilometers and the related gold mining assets within the Mojiang Hani Minority Autonomous Prefecture in Yunan Province, PRC. The Mojiang Gold Mine has proven gold reserves of 16.7 tonnes with an annual output of 1,000 kilograms. Going forward, the Group aims to further increase the annual output of the Mojiang Gold Mine by 30% to 1,300 kilograms.
CPM Chief Executive Officer and Executive Director Dr. Dai Xiaobing said: "With the completion of the acquisition of Mojiang Gold Mines, the Group's gold mining business will reach a meaningful scale. This also represents a significant step towards our mission of increasing the Group's overall gold reserves to 200 tonnes within one to two years."
The Group aims at further developing and expanding its gold mining and sales business through capacity increases and mergers and acquisitions. In addition to the Henan gold mine project currently under negotiation, the Group will continue to seek other gold mining projects with strong investment prospects and the potential of generating stable earnings within a short term.
Dr. Dai concluded: "The gold price will find support against a weak US dollar and low prevailing interest rates. In view of the strong demand for gold in China and international markets, we are optimistic about the future expansion of our gold mining business, which will further strengthen our long-term profitability. Our vision is to become one of the most outstanding gold mining companies listed on the Stock Exchange of Hong Kong. Aiming to grow into a sizable player in terms of gold reserves, the Group also focuses on achieving high production efficiency."
As at 30 June 2010, the Group's cash and bank deposits were HK$541,808,000 (31 December 2009: HK$189,648,000). Net assets and net current assets amounted to HK$1,464,152,000 (31 December 2009: HK$515,513,000) and HK$585,219,000 (31 December 2009: HK$111,332,000) respectively.
About CPM
China Precious Metal Resources Holdings Co., Ltd. (HKEx: 1194) focuses on the mining, processing and production of gold. The Company owns seven gold mines in Chifeng, Inner Mongolia, aggregating to a total mining area of 0.926 sq km and with proven reserves of 15.7 tonnes at average grade of 9.72 gram per tonne.
Financial Highlights
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Six months ended 30 June | |
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2010 | 2009 |
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HK$'000 | HK$'000 |
| Continuing operations |
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| Turnover | 40,698 | -- |
| Gross profit | 29,128 | -- |
| Profit/(Loss) attributable to shareholders | 16,673 | (4,668) |
| Basic earnings/(loss) per share | HK0.33 cent | (HK0.48 cent) |
Contact:
Jenny Lee or Angus Ho
Tel: +852-2511-8388
Fax: +852-2511-8238
Email: cpm@t6pr.com
URL: http://www.t6pr.com
